Agenda - 06-16-2009 - Infor Item 3

Browse Search

1 farm buildings. Non-farmers may not understand the magnitude of taxes and insurance costs. 2 Farm buildings such as poultry houses are not assessed at a farm rate; a new $300,000 poultry 3 house would be taxed at the same rate as a new $300,000 house. Tractors and other 4 depreciable field equipment can cost $50,000-$100,000 or more. In addition to the taxes, 5 insurance is expensive and may only a percentage of the "value" of the equipment, not nearly 6 enough to replace it if necessary. 7 8 9 Residential Growth/Develoument Encroachment 10 Growth has produced two major trends: more people and less farmland. Since 1950, Orange 11 County's population has more than tripled, currently standing at approximately 120,000 people. 12 The number of residents outside the municipal areas (Carrboro, Chapel Hill, Hillsborough) has 13 doubled, and population density has increased from 250 persons per square mile in 1988 to 296 14 persons per square mile in 2000.10 15 16 Growth typically impacts farmers in one or more of the following ways: 17 1) Property values increase. As suburban development creeps into rural areas land prices 18 invariably increase; this has been the case in Orange County. Increasing market values 19 can provide profits to existing property owners, particularly those looking to sell, but 20 they can close the door on potential buyers. Escalating land prices restrict a farmer's 21 ability to purchase more land, thus restricting his or her flexibility to change the 22 agricultural operation or otherwise produce more to increase income. Even successful 23 farmers often find that they must sell sections of land from time to time to keep the 24 larger operation solvent. 25 2) Loss of agricultural services. As farms cease to operate, local agricultural support 26 businesses often close or relocate, leaving farmers with rising costs due to the lack of an 27 urgently needed service (such as tractor repair) or the need to travel further for 28 necessary services adding time and travel expenses to their operation. Feed mills, farm 29 equipment repair services, large animal veterinary operations may become physically 30 separated from active farming communities they were designed to serve. Orange 31 County farmers often have to drive to another county for typical farm services. One of 32 the most costly services is butchering. Producers who want to sell USDA inspected meat 33 locally must drive to Matkins in Caswell County or Siler City in Chatham County to have 34 it processed. Considering the current interest in local and organic fruits and vegetables, 35 free-range and grass feed meats in Orange County, the lack of processing facilities is 36 limiting a very potential market. The future opening of a regional processing center, 37 near Hillsborough, should go a long way toward helping local farmers add value to their 38 products. 39 3) Other forms of agricultural infrastructure such as traditional farm road networks can 40 become disrupted. 41 Transitioning areas often lead to zoning district amendments. Changing zoning 42 designations from agriculture or agricultural residential to rural residential may limit or 43 prohibit the location or expansion of traditional agricultural support services. Impatient 44 vehicular traffic commuting to work can impede slow-moving farm vehicles traveling 45 from field to field. Time is a very important asset in agricultural production. The ability to U. S. Census Bureau. 2000 Orange County Statistics. Website: www.census.gov Draft 6/1/2009 Challenges to Agriculture 18